#Dollarization
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Geographic Arbitrage at 31: The True Cost and Hidden Frictions of Ecuador's Dollarized Economy
A 31-year-old former Amazon finance manager moved his family to Cuenca, Ecuador, with $350,000, slashing monthly rent to $600 and childcare expenses to fractions of US costs. Yet while full dollarization erases FX risk, a 15% VAT, a 5% capital exit tax, and rolling blackouts expose the heavy hidden tolls of cross-border arbitrage on asset isolation and safety redundancy.